Business

An update on corporate welfare: $182 billion and climbing. When the Fraser Institute published the first study on corporate welfare one year ago, the tally between April 1, 1994 and March 30, 2004 amounted to $144 billion. That was the amount Canadian governments distributed to businesses in the form of subsidies from federal, provincial, and municipal treasuries (i.e., taxpayers) over the 10-year period. One year later, and with two more years of data available, that figure has climbed to over $182 billion for the 12 years between 1994 and 2006.

The allocation of investment capital, both internationally and domestically, is increasingly acknowledged as a leading contributor to a jurisdiction’s economic success or failure. It is, therefore, critical to have objective, empirical measurements that document differences in investment climates. The Provincial Investment Climate Index is an important step toward creating empirical measurements of investment climates since it quantitatively evaluates public policies that create and sustain positive investment climates.

VANCOUVER, BCIncreased foreign investment and foreign business activity in Canada leads to lower prices for consumer goods, greater choice, better quality goods and services, and higher wages, according to a new paper by economists with independent research organization The Fraser Institute.

There has been increasing interest in the broad issue of foreign business activity in Canada. This heightened interest has been facilitated by the purchase of foreign companies of several large Canadian firms including Falconbridge, INCO, Molson, Stelco, and Hudson's Bay Company. To address concerns regarding foreign business activity in Canada, the federal government recently announced the creation of a Competition Policy Review Panel to evaluate domestic laws governing foreign investment and competition.